Comments by "Laurence Fraser" (@laurencefraser) on "Rick Beato"
channel.
-
2
-
1
-
1
-
1
-
@davidbyers1151 The record companies also used to straight up be loan sharks engaging in what amounted to wage theft and fraud against the bands the vast majority of the time. Most bands would end up living off ever increasing loans that they could never pay back. It was set up such that lables often wouldn't even bother keeping track of what they were supposed to be paying the artists and/or how much of the loan (because the money they gave artists when they were signed was never a bonus, it was a Loan) had been paid back unless they tought said artists would make it big right out the gate, and it mostly didn't matter unless one unexpectedly DID make it big because the whole thing was set up such that the artist's cut would never be enough to both live on and cover the costs of doing their job as singers/musicians, so they'd have to borrow more from the lable, and paying that back would eat up more of their cut, until in practice what was actually happening was that the lable wasn't so much paying the talents as including a 'talent expenses' line in their own accounting book. The flip side of this was that when the artists quit, that same 'accounting system' meant that they couldn't really force the artists to pay back the remaining outstanding debt most of the time, but still.
Seriously, the record lable would take half the income, then charge you for using all of their facilities and services out of Your cut (I think they paid for advertising and actually making and shipping the physical records/tapes/CDs? not much else though) then take another chunk of Your cut to pay off that initial bonus (loan) you got when you signed with them... you got what was left... Except, as noted, they wouldn't actually keep track of the loans properly, most of the time, just perpetually take a chunk of your cut to theoreically pay them off, forever.
I'm lead to believe they got better somewhere along the way, but that used to be standared behaviour for quite a while.
1
-
1
-
1
-
1